Filing your taxes can be a strenuous job. After spending long hours filling out paperwork, a simple mistake can result in fines and audits. Thanks to modern technology, there are now ways to file your taxes online, not only reducing errors on your taxes, but saving you time and money as well.
Filing Taxes Online
Filing taxes online started over twenty years ago in 1986, but only a handful of Americans filed their tax returns online. It was not until 2005 when filing tax returns online rose in popularity, with over half of all returns being electronically filed. This quick and easy way of filing taxes is growing in popularity each year.
Not only does filing taxes online reduce the number of errors made in the filing process, but also provides you with a confirmation notice when your return has been received by the IRS; a benefit not provided through mailing in the tax return. Along with the emailed confirmation within 48 hours, there are numerous other benefits to filing taxes online.
Benefits of Filing Taxes Online
Free tax filing online also saves time in the filing process itself. With filing using paper forms, you can find yourself having to complete calculations and double, even triple verify that there are no errors. After you spend hours filling out the paperwork, you then have to make a trip to the post office in order to get the forms returned in time. Thanks to electronic tax software, the returns are automatically checked for errors, are 99% accurate, and are sent automatically through the Internet.
Instead of waiting up to two months for a tax refund when filing with paper forms, your tax refund is directly deposited into your bank account within two weeks of filing your taxes. In addition to saving you time in waiting for the refund, it also saves you a trip to the bank and standing in a long line to deposit your refund check. Tax returns using tax software also typically cost less than hiring a professional.
Tax Software
Although there are websites which will provide free online tax filing, there is also a variety of web-based tax software you can purchase. The software allows you to prepare and file tax returns for a fraction of the cost of hiring a professional to complete the same process. Most tax software programs charge $10 for 1040A and 1040EZ forms and up to $50 for a 1040 form.
In recent years, the IRS began to provide a free copy of TurboTax, a commonly used tax software, on their website to prepare and complete free electronic tax filing with no fees. These free programs are encouraging taxpayers to file electronically, allowing the IRS to save money in processing fees and providing speedy refunds to the taxpayers. Going to the company’s site directly instead of through the IRS’s website can result in paying online tax filing fees for the services.
The tax software provides an opportunity for you to print out a copy of your tax returns for your records and stores your information for the next time you need to file a return. Although there can be tax filing online fees for assistance from a professional, the feedback is instantaneous and you do not have to spend time on hold waiting for help.
Filing your taxes electronically has many benefits ranging from saving time to not making errors in the filing. Taking full advantage of this service can result in not having to face fines or audits if there are errors since the software catches them automatically. You also do not have to worry if your taxes made it through the mail since you receive confirmation when received. Although many tax software companies tend to charge fees to use their web-based software, going through the IRS can provide you with the same services without any fees. The next time you’re ready to pay your taxes, remember the benefits of filing taxes online and take advantage of its convenience and cost savings.